10% tariff on China to come into effect on Feb 1 for supplying fentanyl, says Trump

US President Donald Trump has said that he intends to impose 10 per cent tariff on China on February 1.

In remarks at the White House, Trump on Tuesday said that he intends to impose 10 per cent tariff on China over the country’s role in driving the fentanyl crisis.

Trump said, “We’re talking about a tariff of 10 percent on China based on the fact that they’re sending fentanyl to Mexico and Canada.”

Fentanyl is an opioid that is used in pain medication. However, it has long been used as a synthetic drug in the United States and has driven an addiction epidemic that has killed hundreds of thousands of Americans lately. A lot of fentanyl is made in China and supplied to the United States via Mexico.

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Previously, Trump on Monday had said that he would impose tariff of 25 per cent on Mexico and Canada for their failure to check the flow of drugs like fentanyl and illegal immigrants into the United States. However, shortly after winning the 2020 presidential election, he had said that he would impose 25 per cent tariffs on Mexico and Canada and 10 per cent tariff on China on the first day of his second term.

Trump said he mentioned the issue in his conversation with Chinese President Xi Jinping last week.

“I had that talk with President Xi the other day too, of China. I said, we don’t want that crap in our country. We got to stop it. We’re talking about a tariff of 10% on China based on the fact that they’re sending fentanyl to Mexico and Canada,” said Trump.

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The 10 per cent tariff would be on top of any existing levies on Chinese imports. The tariffs that Trump imposed on his first term were followed by a slew of tariffs and trade restrictions by previous President Joe Biden, such as steep tariffs on Chinese electric vehicles (EVs), metals, solar panels, etc., and trade restrictions on Chinese semiconductor and other high-tech industries.

Even though Trump has threatened China, the principal US adversary, with tariff, it is considerably less than what he has threatened allies with. While Canada and Mexico, US neighbours and allies, are threatened with 25 per cent tariffs, China faces just 10 per cent tariff. It is even lower than the 60 per cent tariff on all Chinese imports that Trump had promised on the campaign trail.

Trump has long used tariffs as a negotiation tactic with nations to reach a favourable deal. It appears he is now using tariffs’ threats now to renegotiate the United States-Mexico-Canada-Agreement (USMCA) and the trade deal with China that he signed in his first term. The deal with China turned into an absolute failure.

Trump on Monday ordered the commerce and treasury departments along with the trade representative to review US trade deficits with nations, identify nations’ unfair practices in trade with the United States, and review existing trade deals like the USMCA and Phase One Trade Agreement of 2020 with China.